FedEx Tender Offer for TNT Extended to Allow More Regulatory Review Time
FedEx Corp. and TNT Express NV said the tender offer for the Dutch package and express company’s shares has been extended until Jan. 8 to allow more time for completion of regulatory reviews in countries such as China and Brazil.
The companies’ joint announcement about the latest step in the $4.9 billion agreement was made to comply with the rules governing mergers of Netherlands-based companies. Those rules require a tender offer to continue while regulatory rulings about a merger are being considered.
FedEx in April announced the plan to acquire TNT in order to gain more package and freight business in Europe and expand worldwide service offerings.
The extension was announced after the original period for receiving all regulatory approvals ended Oct. 30. While the parties await other clearances, they were informed last month by the European Commission that it would not block the transaction.
“Based on the required steps and subject to the necessary approvals, FedEx and TNT Express continue to anticipate that the offer will close in the first half of calendar year 2016,” the statement said. “FedEx and TNT Express are on track to obtain all necessary approvals and competition clearances.”
The companies also said an acquisition-related filing will be made in the United States by the end of the year. No other details were provided. In addition, the companies said they would request further extensions in the Netherlands if needed.
In a related matter, TNT announced earnings for the third quarter that included narrowing of its loss before interest and taxes to 27 million euros ($30 million) from 51 million euros. Excluding one-time charges in both quarters, the adjusted operating income was 13 million euros this year and 46 million last year.
Revenue rose 2.3% to 1.67 billion euros. Revenue rose 3.6% when currency and fuel surcharge factors were excluded.
